H.B. Fuller finalizes its purchase of UK-based Apollo for $211M, sees accretion

H.B. Fuller announced that it has finalized its purchase of Apollo, an independent manufacturer of liquid adhesives, coatings and primers for the roofing, industrial and construction markets. Based in Tamworth, UK, Apollo is projected to have 2022 revenue of approximately GBP 42M and EBITDA of approximately GBP 11M. Apollo will operate within H.B. Fuller's existing Construction Adhesives and Engineering Adhesives business units, and is expected to enhance H.B. Fuller's position in key high-value, high-margin markets in the UK and Europe. Total purchase price for the two acquisitions was $211M, a multiple of 12.3X EBITDA before synergies. Annual run-rate synergies of $8M are expected to be realized over the next three years, resulting in a post synergy multiple of 8.4X EBITDA. "With these acquisitions, we have added deep market knowledge, strong customer relationships and a local manufacturing footprint, which will enable H.B. Fuller to capitalize on access to regional capabilities in the UK and core Europe and to fully leverage our CA technology portfolio much more effectively," said H.B. Fuller President and CEO Jim Owens. H.B. Fuller expects sales expansion of Apollo and Fourny's established products to provide annualized revenue and cost synergies of approximately $8 million by 2024. The transactions are expected to have a positive impact on H.B. Fuller's long-term growth rate and gross margin in its Construction Adhesives and Engineering Adhesives business units, and be accretive to adjusted earnings per share in the first year following the close of the transaction.